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PM in the Upstream Value Chain

  • Marc Helmold
Chapter
Part of the Management for Professionals book series (MANAGPROF)

Abstract

Performance in the upstream value chain deals with the management of the supply side and the purchasing of raw materials, semi-finished and finished parts or services. Synonyms of purchasing are procurement, acquisition or supply management. Supply management plays in this context a crucial role in securing this input and to manage factors like quality, cost, delivery, technology and alpha elements (Q-C-D-T-plus alpha). The essential point is here that supply management has to link all the activities between suppliers, their own organization and the customers in a timely manner. In recent years, there was a trend for many industries such as automotive, railway, aerospace and machinery to reduce their own value-adding activities. As a result, companies were becoming more and more dependent on supply networks. That gave a crucial role to the supply management function. Many companies had/have value-adding activities of less than 15%, which means that 85% of their activities were/are outsourced to third parties.

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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Marc Helmold
    • 1
  1. 1.IUBHBerlinGermany

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